The International Finance Corporation (IFC), a member of the World Bank Group, has announced a $7 million investment in Salmon Group Ltd., a consumer fintech company based in the Philippines. This funding is part of a larger $25 million fundraising round that also saw contributions from various local and international investors, including Singapore’s Northstar Group and ADQ/Lunate among others.
Salmon Group is known for providing short-term loans to consumers who are typically underserved by traditional banking institutions. With this new influx of capital, the company plans to introduce new credit products and a lifestyle banking service in the second half of 2024. These initiatives aim to broaden financial access and offer modern, affordable, and convenient banking solutions to Filipinos.
Jean-Marc Arbogast, the IFC Country Manager for the Philippines, expressed strong support for Salmon’s innovative approach to financial services, which aligns with IFC’s mission to promote private sector development and financial inclusion.
In December 2023, Salmon expanded its operational capabilities by acquiring a banking license from the Bangko Sentral ng Pilipinas (BSP). This license allows Salmon to offer a wider range of financial services, including deposit accounts, debit and credit cards, and other transactional products. Leveraging AI-enabled technology for enhanced credit scoring and a proprietary credit engine, Salmon is positioned to transform the financial landscape for its customers by making financial services more accessible and tailored to their needs.
This strategic partnership between Salmon and IFC not only highlights the potential of fintech innovations in emerging markets but also signifies a significant step towards financial empowerment for the underbanked population in the Philippines.
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